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Borrowing Could Pay Big Dividends in These Taxing Times

By

Spencer Jakab

July 8, 2012 1:18 p.m. ET

There is no such thing as a free lunch, but there may be a cheap meal staring companies in the face due to uncertainty over the U.S. tax code.

Individuals in the highest income-tax bracket are set to see their marginal rate on dividend payouts rise to 43.4% in 2013 from 15%, assuming the surtax related to healthcare legislation remains in place and the Bush tax cuts aren't extended. Combined with record-low borrowing rates and...